Royal Caribbean adds three newbuilds to STX France orderbook

Days after delivering the world's largest cruise liner, Hamony of the Seas, to Royal Caribbean, STX France has signed an MOU to build another Oasis class ship and two more Edge-class ships

MAY 25, 2016 — Royal Caribbean Cruises Ltd. (NYSE: RCL) today announced that it has signed a memorandum of understanding with French shipbuilder STX France to build a fifth Oasis-class ship for delivery in the Spring of 2021, for its Royal Caribbean brand, and two additional Edge-class ships, scheduled for delivery in the fall of each of 2021 and 2022, for its Celebrity Cruises brand.

"The response to the arrival of Harmony of the Seas is staggering, eliciting excitement from eager cruisers from markets on both sides of the Atlantic," said Richard D. Fain, Chairman and CEO, Royal Caribbean Cruises Ltd. "And Edge-class is one of the most highly anticipated new projects, following the high bar of modern luxury design set by its predecessor, the Solstice-class."

"The Oasis-class ships have delivered beyond expectations each time," said Michael Bayley, President and CEO, Royal Caribbean International. "Harmony of the Seas' warm reception is evidence that growing this class of ship will continue to drive exceptional performance for the brand."

"Although our first Edge-class vessel is still over two years away from delivery, there has been a tremendous amount of interest around the new standard of style Edge-class will introduce," said Lisa Lutoff-Perlo, President and CEO, Celebrity Cruises. "Solstice-class ushered in a new era of design for modern cruise ships, and Edge-class will not disappoint as the new generation of high style and design."

STX France is currently completing the design phase of the first prototype 2,900 passenger Edge-class ship and is scheduled to start its production this fall for a delivery in fall 2018.

"We are extremely pleased with the recent success of Harmony of the Seas and take great pride in our partnership with Royal Caribbean," said Laurent Castaing, Managing Director of STX France. "It is especially exciting to collaborate on such diverse projects from Oasis to Edge, both marvels in their own space."

This order is contingent upon the completion of customary conditions, including documentation and financing. Final contracts, which include the definitive payment schedules, are expected to be completed within the quarter. Capacity increases for 2016 through 2020 remain unchanged.

STX France says that, when finalized, the three orders will secure the shipyard's orderbook through 2023.